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1. Trade restrictions currently in force

In order to prevent Iran from developing a nuclear programme for
the construction of weapons of mass destruction ("WMD"),
the UN Security Council from July 2006 onwards passed a series of
resolutions by which several foreign trade restrictions were
imposed on Iran.1 Consequently, the EU too enacted a
series of restrictive measures against Iran through which the UN
resolutions have been implemented and materially amended. The EU
has imposed additional sanctions against Iran due to human rights
infringements and internal repression in Iran. Currently, the
following EU trade restrictions are in place:

Council Decision 2011/235/CFSP
concerning restrictive measures against certain persons and
entities due to violations of human rights in
Iran;5

Regulation 267/2012 comprises inter alia restrictions
on trade in dual-use goods and technology, key equipment and
technology that could be used in the petrochemical industry, a ban
on the import of Iranian crude oil, petroleum products and
petrochemical products,6 the prohibition of investment
in the country's petrochemical industry,7
restrictions on trade in gold, precious metals and diamonds with
the Government of Iran8, as well as restrictions
pertaining to financial services and monetary
transfers9 and the freezing of funds and economic
resources of certain individuals10.

2. Implementation Plan for the termination of restrictive
measures

Following a June 2015 meeting in Vienna of the E3+3
states11 and Iran, in which an agreement on the future
of Iran's nuclear program was reached, the UN Security Council
adopted the Resolution 2231/201512 (the
"Resolution"), including a Joint Comprehensive Plan of
Action (the "JCPOA") as Annex A.

Annex V icw Annex II JCPOA provides for a stepwise lifting of
the restrictive measures imposed on Iran and certain individuals
according to an implementation plan and on the condition that Iran
decommissions its nuclear program as set forth in the Resolution.
The main steps of the implementation plan are:

On Finalisation Day (the day on which
the negotiations between Iran and the E3+3 states were concluded,
namely 14 July 2015), the UN adopted the Resolution and Iran was
required to start developing necessary arrangements to implement
all transparency measures necessary to oversee Iran's
compliance with its obligations under the
Resolution.13

Adoption Day will occur 90 days after
endorsement of the UN Resolution (ie 20 October 2015); the JCPOA
comes into effect on this day. Iran will start to implement the
measures concerning the decommissioning of its nuclear program as
set forth in the Resolution (eg decommissioning of nuclear
enrichment facilities). The EU will adopt measures to terminate
certain provisions which implement economic and financial sanctions
related to Iran's nuclear programme. However, the termination
of the sanctions will not enter into force before Implementation
Day.14

Implementation Day is expected to
occur around the first quarter of 201615. On
Implementation Day, the IAEA shall verify (and confirm) the full
implementation of the agreed nuclear-related measures. In case the
IAEA confirms full transposition of these measures, the termination
of certain restrictions will enter into force. Such termination
would in particular lift those economic sanctions that are not
directly connected to the proliferation of WMD (eg restrictions on
the import of petrochemical substances, the export of key-equipment
for the petrochemical industry, trade in gold and precious metals,
export financing, export of vessel equipment, etc), as well as
restrictions against individuals, especially those in the energy-
and finance sectors.16

Transition Day will occur 8 years
after Adoption Day or upon the IAEA reporting that all nuclear
material in Iran is being used for peaceful purposes. On Transition
Day, the EU will terminate the remaining, non-proliferation-related
restrictive measures as set forth in Regulation 267/2012 and
Council Decision 2012/413/CFSP.

However, the JCPOA also provides for snapback mechanisms through
which sanctions would re-enter into force if Iran infringes its
obligations under the Resolution and the JCPOA.17 In
addition, those restrictive measures imposed due to human rights
violations as set forth under Regulation 359/2011 and Council
Decision 2011/235/CFSP are not affected by the JCPOA and will
remain in force.

3. Amendments of the Regulation 267/2012

In order to enable Iran to transpose the JCPOA, Regulation
2015/132718 entered into force on 2 Aug 2015, thus
amending Regulation 267/2012.

Under the new Art 43b Regulation 267/2012, national authorities may
now license the export to Iran of items, materials, equipment,
goods and technology, and the provision of any related technical
assistance, training, financial assistance, investment, brokering
or other services that is related to the modification and
modernization of two Iranian nuclear facilities (Fordow and Arak)
and the export of the country's enriched uranium in excess of
300 kilograms in return for natural uranium.

Under Art 43c Regulation 267/2012, national authorities may
authorize, on a case-by- case basis, transfers and activities to
Iran that are inter alia directly related to the implementation of
the JCPOA or required for the preparation of its
implementation.

4. Conclusion

UN-Resolution 2231/2015 does not provide for an immediate
termination of restrictive measures against Iran; instead, the
lifting of sanctions is dependent on the de facto decommissioning
of Iran's nuclear program for WMD. Therefore, currently
European exporters are still bound by the sanctions foreseen in the
respective Regulation and Council Decision. Infringing these
sanctions or concluding agreements that are not in line with the EU
sanctions mechanism may result in the imposition of severe
administrative fines.

Even after the restrictive measures with regard to Iran's
nuclear program have been lifted, exporters are well advised to
keep an eye on those restrictions that are not affected by the
Resolution, namely those which have been imposed due to human
rights infringements.

1 Starting with UN Security Council Resolution 1696,
passed on 31 July 2006.

2 OJ 24.3.2012, L 88/1.

3 OJ 14.4.2011, L 100/1.

4 OJ 27.7.2010, L 195/39

5 OJ 14.4.2011, L 100/51.

6 Cf Art 2 et sequ and Annex I and II Regulation
267/2012.

7 Cf Art 17 et sequ Regulation 267/2012.

8 Cf Art 15 icw Annex VII Regulation
267/2012.

9 Cf Art 30 et sequ Regulation 267/2012.

10 Cf Art 23 et sequ Regulation 267/2012.

11 France, UK, Germany, Russia, China and
USA.

12 S/RES/2231(2015) adopted by the Security Council at
its 7488th meeting, on 20 July 2015.

13 Cf Annex V pt A JCPOA.

14 Cf Annex V pt B JCPOA.

15 Cf BAFA, Merkblatt zu den Entwicklungen des Iran
Embargos.

16 Cf JCPOA Annex V/C. Implementation Day, pt 15 icw
Annex II.

17 Cf Pt 36 et sequ Resolution.

18 OJ 31.7.2015, L 206/18.

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